Since January 2020, the Law of Georgia on Mediation has entered into force. Accordingly, it is desirable for our readers to have information about what this law concerns and what types of relationships it regulates.
Mediation is an alternative method of dispute resolution. The Law on Mediation defines the principles of conducting mediation in order to encourage alternative dispute resolution and to create the relevant conditions.
Let us clarify several terms important for the mediation process:
Participants in mediation − mediator, parties, representatives of the parties, third party;
Mediator − a natural person registered in the unified register of mediators, who meets the requirements established by this law and agrees to conduct mediation, regardless of his/her status and the manner of selection/appointment;
Mediation agreement − a written agreement between the parties, in the event of a dispute, to refer the matter to mediation;
Principles of conducting mediation
Mediation is based on the principles of voluntariness of the parties (except in cases provided by law), self-determination, good faith and equality, protection of confidentiality, and the independence and impartiality of the mediator. Issues arising during the mediation process that are not regulated by this law must be resolved on the basis of these principles.
Commencement of mediation
The prerequisite for commencing mediation is a mediation agreement.
Mediation begins on the basis of a request to the mediator by the parties or one of the parties, or, in cases provided by law, as a result of the transfer of the case to a mediator by the court or another competent authority upon the parties' motion.
If there is a mediation agreement under which the parties agree not to apply to the court or arbitration until a specified period or circumstance occurs, the court or arbitration shall not consider the dispute until the conditions specified in the mediation agreement are fulfilled, except in cases where the claimant proves that he/she will suffer irreparable harm without judicial or arbitral review. The respondent must make a statement regarding the mediation agreement before the deadline for submitting a response. An application by a party to the court or arbitration shall not be considered as a refusal of the mediation agreement or as termination of ongoing mediation.
A party has the right to withdraw from participation in mediation at any stage of the process, unless otherwise provided by law or by the mediation agreement.
The mediator assists the parties in reaching a settlement for the purpose of resolving the dispute, taking into account the principle that the parties make a free, independent, and informed decision regarding both the mediation process and its final outcome. The mediator does not have the right to make a decision regarding the dispute between the parties.
With the consent of the parties, the mediator may propose the terms of a mediated settlement to the parties, taking into account their interests and the positions expressed by them during the mediation process.
Mediation is considered completed:
a) if the parties have agreed in writing to resolve the dispute by mutual agreement − from the date of the parties' agreement;
b) if the parties have agreed in writing to terminate the mediation − from the date of the parties' agreement;
c) if a party has declared in writing the refusal to continue participation in mediation − from the date of the party's declaration of refusal;
d) if the period specified for mediation has expired − from the date of expiration of this period;
e) if, after consultation with the parties, the mediator declares that continuation of mediation is unreasonable and unjustified − from the date the mediator makes such a declaration.
Enforcement of mediated settlement
1. By agreement of the parties, a mediated settlement may be enforced by the court.
2. A request for enforcement of a mediated settlement may be submitted to the court by one or both parties.
